New York Markets After Hours

Analysts, lawmakers respond to jobs report

WASHINGTON (MarketWatch) — Following is a roundup of reactions from Wall Street analysts and Washington lawmakers to Friday’s Labor Department report, with many pondering the implications for the Federal Reserve.

• “In short, not especially strong nor weak. While a 150-170K per month trend in payrolls is far from booming, it is strong enough over time to keep the unemployment rate moving down given slowing in the secular trend in labor force growth. Unemployment was flat in December, but it is down 0.4 points in the last six months.” — Jim O’Sullivan, chief U.S. Economist, High Frequency Economics.

• “The overall picture is that the labor market remains lackluster. If this state of affairs continues throughout most of this year, as we expect, then it is hard to see the Fed dialing back or stopping its [quantitative-easing] purchases as some officials currently envisage.” — Paul Ashworth, chief U.S. economist, Capital Economics.

• “The Fed will look at this report and shrug; they are not tightening anytime soon. That employment is holding up despite the downside risks from the fiscal cliff should make equity investors happy.” — Neil Dutta, Renaissance Macro.

• “Beyond the headline employment numbers, gains in average hourly earnings (+0.3% m/m) and the workweek (up 0.1 to 34.5) are encouraging signs that the labor market more broadly is firmly in recovery mode.” — Peter Newland, Barclays.

• “While more work remains to be done, today’s employment report provides further evidence that the U.S. economy is continuing to heal from the wounds inflicted by the worst downturn since the Great Depression. It is critical that we continue the policies that are building an economy that works for the middle class as we dig our way out of the deep hole that was caused by the severe recession that began in December 2007.” — Alan Krueger, chairman of the White House Council of Economic Advisers.

• “Our economy continues to grow and create jobs, but for those still unemployed in Nevada and throughout the nation, the recovery will not be a reality until they start earning a paycheck once again. To keep our recovery going, we need to avoid another knock-down, drag-out fight over whether to default, or to pay our nation’s existing bills.” — Senate Majority Leader Harry Reid, Democrat of Nevada.

• “Too many Americans are still out of work and Washington has too much debt. Our oversized and overspent federal government is a drag on economic growth and job creation, and has burdened every American with a $50,000 share of its debt, and rising. This is the year we need to work together to solve these problems. In the coming months, the House will pass real spending cuts, meaningful reforms of the entitlement programs that are driving us deeper into debt, and a fairer, cleaner tax code.” — House Speaker John Boehner, Republican of Ohio.

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